POET Technologies Inc. (POET (POET)) shares edged higher Wednesday as a broader rally in semiconductor stocks helped offset the sting of a lost partnership with Marvell Semiconductor. The stock was up 2.16% at $9.41 at the time of publication, according to market data.
The move comes after a brutal stretch for POET. On April 27, shares cratered 47.35% to $7.95 after Marvell canceled all Celestial AI-related purchase orders, citing an alleged confidentiality breach tied to disclosures about purchase orders and shipping. The canceled orders effectively ended a partnership first announced in April 2023, leaving a gaping hole in POET's near-term revenue outlook.
Investors are now watching whether a separate $5 million purchase order from another technology company can help fill the void. But the company has acknowledged there is no assurance it can restore its relationship with Marvell.
Semiconductor Sentiment Improves
The broader chip sector got a boost Tuesday after U.S. Defense Secretary Pete Hegseth said the ceasefire with Iran "certainly holds" and confirmed that U.S. ships had safely transited the Strait of Hormuz, easing fears of a wider regional conflict. Chip stocks also drew support from reports that the U.S. is advancing the Pax Silica initiative with allies including South Korea, Japan, India and the Philippines to strengthen semiconductor supply chains and expand manufacturing capacity.
Options Activity Draws Attention
Options activity also caught traders' eyes. July 17 $16 call options recorded a sweep of 1,003 contracts near the ask price of $0.691, versus open interest of 25,983 contracts. The activity comes ahead of POET's expected earnings report on May 18 after the close, suggesting some traders are positioning for a potential upside move.
Earnings Preview
Investors are looking ahead to the next earnings report on May 18, 2026. Analysts expect a loss of 5 cents per share, improved from a loss of 8 cents a year ago. Revenue is estimated at $0.35 million, up from $0.17 million in the same quarter last year.
Whether POET can sustain its recent recovery will likely depend on its ability to replace the lost Marvell business and deliver on those revenue expectations. For now, the stock is riding the wave of a broader chip rally, but the fundamental questions remain.
